2 Segment information
General disclosures
As a result of the acquisition of Vodafone Italia at the end of 2024, Swisscom has amended its governance and organisational structure. A Group Executive Committee, which is headed by the CEO, was created for Group-wide management. The business in Switzerland and Italy is now managed by a dedicated Executive Committee for each country. Segment reporting has been adapted to the organisational structure accordingly. From the financial year 2025, reporting is divided into the segments Switzerland, Italy and Others. As a result of the organisational changes, the previous year’s information has been restated.
From the 2025 financial year onwards, the EBITDA after lease expense (EBITDAaL) metric will be used to measure and report on the financial performance of the Group and the operating segments. Following the acquisition of Vodafone Italia and the adapted principles for lease accounting from the 2025 financial year onwards, the importance of leases has seen a sharp increase. The EBITDAaL metric is considered more reliable and more relevant for financial management (allocation of resources and measurement of financial performance) and communication with investors than the previous EBITDA metric. It will also boost comparability with other telecommunications providers.
Segment expense encompasses the direct costs, personnel expense and other indirect costs. In the segment reporting, lease expenses of CHF 409 million (prior year: CHF 172 million) are allocated to direct costs (current year: CHF 220 million; prior year CHF 99 million) and other indirect costs (current year: CHF 189 million; prior year: CHF 73 million). Pension cost includes ordinary employer contributions. The difference between the ordinary employer contributions and the pension cost as provided for under IAS 19 is reported in the elimination column. The elimination column in the segment result, which totals CHF –17 million (prior year: CHF –3 million), includes expense of CHF 4 million (prior year: income CHF 4 million) as a pension cost reconciliation item in accordance with IAS 19.
Capital expenditure consists of the purchase of property, plant and equipment and intangible assets and payments for indefeasible rights of use (IRU). In general, IRUs are paid in full at the beginning of their use and are classified as leases under IFRS 16. From an economic point of view, IRU payments will be considered as capital expenditure in the segment information. Capital expenditure in the first three months of 2025 includes IRU payments of CHF 18 million (prior year: CHF 4 million).
Segment information 2025
| 1.1.–31.3.2025, in CHF million | Switzerland | Italy | Others | Elimination | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Residential customers | 1,064 | 806 | – | – | 1,870 | |||||
| Business customers | 740 | 755 | 94 | – | 1,589 | |||||
| Wholesale customers | 141 | 155 | – | – | 296 | |||||
| Other | 4 | – | – | – | 4 | |||||
| External revenue | 1,949 | 1,716 | 94 | – | 3,759 | |||||
| Intersegment revenue | 13 | 1 | 165 | (179) | – | |||||
| Revenue | 1,962 | 1,717 | 259 | (179) | 3,759 | |||||
| Direct costs | (369) | (813) | (22) | 16 | (1,188) | |||||
| Personnel expense | (546) | (127) | (103) | (4) | (780) | |||||
| Other indirect costs | (182) | (379) | (103) | 150 | (514) | |||||
| EBITDA after lease expense (EBITDAaL) | 865 | 398 | 31 | (17) | 1,277 | |||||
| Lease expense | 409 | |||||||||
| Operating income before depreciation and amortisation (EBITDA) | 1,686 | |||||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (773) | |||||||||
| Depreciation of right-of-use assets | (394) | |||||||||
| Operating income (EBIT) | 519 | |||||||||
| Financial income | 18 | |||||||||
| Financial expense | (95) | |||||||||
| Result of equity-accounted investees | – | |||||||||
| Income before income taxes | 442 | |||||||||
| Income tax expense | (75) | |||||||||
| Net income | 367 | |||||||||
| EBITDA after lease expense (EBITDAaL) | 865 | 398 | 31 | (17) | 1,277 | |||||
| Capital expenditure | (423) | (360) | (9) | 13 | (779) | |||||
| Operating free cash flow | 442 | 38 | 22 | (4) | 498 |
Segment information 2024
| 1.1.–31.3.2024, in CHF million, restated | Switzerland | Italy | Others | Elimination | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Residential customers | 1,070 | 273 | – | – | 1,343 | |||||
| Business customers | 765 | 269 | 104 | – | 1,138 | |||||
| Wholesale customers | 134 | 80 | – | – | 214 | |||||
| Other | 4 | – | – | – | 4 | |||||
| External revenue | 1,973 | 622 | 104 | – | 2,699 | |||||
| Intersegment revenue | 13 | 1 | 148 | (162) | – | |||||
| Revenue | 1,986 | 623 | 252 | (162) | 2,699 | |||||
| Direct costs | (382) | (308) | (20) | 16 | (694) | |||||
| Personnel expense | (545) | (55) | (107) | 4 | (703) | |||||
| Other indirect costs | (173) | (90) | (95) | 139 | (219) | |||||
| EBITDA after lease expense (EBITDAaL) | 886 | 170 | 30 | (3) | 1,083 | |||||
| Lease expense | 172 | |||||||||
| Operating income before depreciation and amortisation (EBITDA) | 1,255 | |||||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (522) | |||||||||
| Depreciation of right-of-use assets | (165) | |||||||||
| Operating income (EBIT) | 568 | |||||||||
| Financial income | 23 | |||||||||
| Financial expense | (37) | |||||||||
| Result of equity-accounted investees | – | |||||||||
| Income before income taxes | 554 | |||||||||
| Income tax expense | (99) | |||||||||
| Net income | 455 | |||||||||
| EBITDA after lease expense (EBITDAaL) | 886 | 170 | 30 | (3) | 1,083 | |||||
| Capital expenditure | (445) | (149) | (8) | 8 | (594) | |||||
| Operating free cash flow | 441 | 21 | 22 | 5 | 489 |